Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
47 Cards in this Set
- Front
- Back
Spending approach |
C + I + G + NX |
|
Deflators |
(nominal / real ) x 100 |
|
Inflation |
Percent change of CPI |
|
Three ways to measure GDP |
Spending approach , income and production approach |
|
Working pop formula |
LF / LF participation rate |
|
Unemployment rate |
Unemployment x employed / 1 - employment rate |
|
Consumption |
Spending on households goods and services |
|
Investment |
Spending on firms for new factories equipment and machinery |
|
Transfer payments |
Payments by the government to individuals for which the government does not recieve a new good or service in return |
|
Net exports |
Exports minus imports |
|
What goes Into consumption |
Durable and non-durable and services |
|
What goes into investments |
Business fixed residential construction and change in business inventory |
|
What goes into govt purchases |
Federal state and local |
|
T |
B |
|
National saving |
Income minus consumption minus govt purchases |
|
Saving rate |
Saving divided by income |
|
S national equals |
S private plus s public |
|
S national |
Y minus C minus G |
|
S private |
Y plus TR minus C minus T |
|
S public |
T minus G minus TR |
|
Components of aggregate income |
Labor and capital income depreciation idrirect business taxes net income forgeigners |
|
Real rate of change |
Nominal rate minus inflation rate |
|
Law of demand |
When price of product falls the quantity demanded increases |
|
What determines quantity demanded? |
Price |
|
Factors that shift the curve |
Taste, number of buyers, income , prices of related goods , consumer expectations |
|
What causes a movement in demand curve |
The price |
|
Law of supple |
Increases in supply increases the quantity supplied |
|
Vertical interpretation of supply curve |
Shows the marginal cost for producing each unit |
|
Shifts of supple curve |
Change in resource prices, technology, taxes and subsidies, prices of other goods, producer expectations , number of supplies |
|
What helps markets succeed |
Property rights |
|
Non rival |
Use by others does not reduce it's availability to others |
|
Non excludable |
Impossible to exclude anyone access to it |
|
User fee |
Fee of a good charged by the govt |
|
Good that produce negative externalities should be ____ |
Taxed |
|
Goods that produce positive externalities should be _____ |
Subsidized |
|
Merit goods |
Should be available to everyone independently of their own ability to pay |
|
Sources of market failure |
External costs or benefits , assymetric info, limited competition |
|
Possible solutions for market failure |
Regulation taxation and compensation |
|
Marginal private cost |
Cost of production viewed by a firm |
|
Marginal social cost |
Costs viewed by society as a whole |
|
Marignal benefit is demand |
B |
|
Marginal social cost is supplied |
H |
|
Deadweight loss occurs in negative externalities |
H |
|
Marginal private benefit |
Additional benefit from consuming a good from the view point of a private individual |
|
Dead weight loss occurs in postice externality as well |
H |
|
Falling interests rates are good for bond holders if you want to sell |
H |
|
Rising interest rates are bad for bond holders if you want to sell |
H |